To: bruinbirdman
Someone tell me, please—
If they lower the federal funds rate, does it automatically follow that the prime rate will also go down?
Or are those two necessisarily connected?
2 posted on
08/30/2007 5:43:37 PM PDT by
Clique
(I am right, And you are right, And all is right as right can be! - A.S. Gilbert (prophetic words)
To: Clique
If they lower the federal funds rate, does it automatically follow that the prime rate will also go down? Or are those two necessisarily connected? The two do move together. I don't think I would call it automatic, but banks do tie their prime rates to the funds rate.
8 posted on
08/30/2007 6:07:09 PM PDT by
Moonman62
(The issue of whether cheap labor makes America great should have been settled by the Civil War.)
To: Moonman62
"but banks do tie their prime rates to the funds rate."Something like "our prime rate is Fed + 1%" depending on who you are or who you know. I think more usual is "Libor + ?%".
yitbos
12 posted on
08/30/2007 7:39:28 PM PDT by
bruinbirdman
("Those who control language control minds." -- Ayn Rand)
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